lwlg-logoWe first brought you Lightwave Logic Inc. back on January 3rd, and the stock has shown considerable strength. Despite two sell-offs in the past six months that have pushed the share price down in the mid-eighty cent range, the stock has recovered each time.

We even seen an upward trend that could push the stock past its November high’s of $1.24. In January there were a couple of days that reached a penny shy of that level, but we are seeing greater strength in buying the last two days with 338,527 shares traded combined between yesterday and today. Today was a staggering 242,564 shares traded. Most of these were on the buy side, with little to no selling into this momentum.

The most recent news was important because it further proves the technology. It is one thing to meet the needs of any potential client, but surpassing those needs says a lot of about LWLG’s ability to deliver an excellent product.

Here is from the most recent release:

“Lightwave Logic, Inc. (LWLG), a technology company focused on the development of a Next Generation Non Linear Optical Polymer Materials Platform for applications in high speed fiber-optic data communications and optical computing, announced today that it has delivered prototype devices to its potential microelectronics partner coated with the Company’s advanced organic nonlinear electro-optical polymer, Perkinamine IndigoTM. Tests conducted by the University of Colorado Boulder (UCB) on coupons coated with the material demonstrated consistent R33 measurements from 100-125 picometers per volt. This exceeds the microelectronics company’s stated requirements.

“Picometers per volt is a measure of electro-optical activity that is inversely proportional to the drive voltage necessary to operate devices. Higher electro-optical activity results in lower power requirements and therefore, increased efficiency. “

What to watch for:

  • On a technical basis, watch for the stock to break-out above $1.30. That would be an excellent signal that the resistance is falling, and the share price can now move upward.
  • Fundamentally, the Company will obviously be putting out more information as circumstances allow.  It should be noted that they gave a very comprehensive and detailed update on December 31, 2012 (See: Breaking News on Lightwave Logic Inc. (LWLG) ~ Company Issues Very Detailed Update ). Obviously they were busy and delayed the previously scheduled call into later this month. I would be very interested to hear what is new.  

Our Outlook on Lightwave Logic:

As the Company continues to prove the technology, we see a significant upside. This is the next logical step in high speed fiber-optic data communications and optical computing. The Company is well protected with an two key patents already and another six pending as listed on their web site –  HERE.

There are just 51 million authorized shares, with more than 96% of those issued. That means there is little chance the Company can flood the market with shares. It makes the existing shares that much more valuable, as there is little the Company can do to undermine the share price. All indications are that they are not interested in undermining the share price at all, as the momentum is moving upward from what I see.  Of course that can change with a meeting of the board.

We see a break-out as probable. We believe that shares for Lightwave Logic could pass $1.50 in the first or second quarter of 2013. As the technology is further proven and as patents that are pending are approved, we could see that move up even higher. 

FYI – we hold not shares. We may acquire shares at some time in the future, although we have made no plans yet to do so.